Staff Budget Reduction Recommendation Board of Education Meeting - - PowerPoint PPT Presentation
Staff Budget Reduction Recommendation Board of Education Meeting January 11, 2011 1 Recommendation Staffs budget reduction recommendation is based on the most current data available. Factors such as the states revenue
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receiving less than flat funding from the county and Board decisions could affect this recommendation.
recommendation may be required. So while this may not be the final recommendation, it is our best thinking as of today, January 11, 2011.
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This data is from a Dec. 15, 2010, report from the Fiscal Research Division, a staff agency of the NC General Assembly.
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downturn, expiration of federal stimulus dollars and revenue challenges has left the state with a projected $3.7 billion shortfall.*
Management requested that all state agencies submit plans to reduce their budgets by 5, 10 and 15 percent.
*This data is from a Dec. 15, 2010, report from the Fiscal Research Division, a staff agency of the NC General Assembly.
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Preliminary FY 2011-12 Budget Gap Estimate
$18.2 billion
$21.9 billion
This data is from a Dec. 15, 2010, report from the Fiscal Research Division, a staff agency of the NC General Assembly.
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Preliminary FY 2011-12 Budget Gap Estimate
FY 2010-11 Revenue Availability $19.0 billion Expiration of 1% Sales Tax
Expiration of Corporate and Personal Income Surtaxes
Other One-Time Revenue Adjustments
Preliminary Estimate of Revenue Growth + 0.7 billion Preliminary Availability Estimate for FY 2011-12 $18.2 billion FY 2010-11 Certified Budget $19.0 billion State Funds Needed to Replace Federal ARRA Funds + 1.6 billion Other One-time Budget Adjustments + 0.4 billion Retirement System Contribution + 0.3 billion State Health Plan + 0.2 billion K-12 and Higher Education Enrollment + 0.2 billion Medicaid + 0.2 billion Preliminary Estimate of FY 2011-12 Budget $21.9 billion Preliminary Estimate of Budget Gap
This data is from a Dec. 15, 2010, report from the Fiscal Research Division, a staff agency of the NC General Assembly.
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NC is experiencing financial pressure in each of the major budget categories for FY 2010-11
Net Gen. Fund % Major Budget Categories Appropriations
Public Schools 7,085,588,912 37% Higher Education* 3,722,071,167 20% Medicaid 2,368,365,829 12% Correction 1,285,252,983 7% Mental Health 705,476,614 4% Natural & Econ. Resources 467,727,028 2% Courts** 566,019,508 3% Capital and Debt 718,695,003 4% Other 2,039,797,168 11% TOTAL $18,958,994,212 100%
*Includes universities and community colleges **Includes courts and indigent defense
This data is from a Dec. 15, 2010, report from the Fiscal Research Division, a staff agency of the NC General Assembly.
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Reduction % State Reduction Federal Funding Cliff County Growth/ Sustaining Estimate* Subtotal** Reduction % County Reduction Total Reduction @5% $32M $15M $15M $62M @5% $15M $77M @10% $63M $15M $15M $93M @10% $30M $123M @15% $95M $15M $15M $125M @15% $45M $170M
**Assumes flat funding from county ***Adopted budget divided by projected enrollment
The 2010-11 budgeted per-pupil amount is $8,523***. The per-pupil amount drops to $7,263 under the worst- case scenario presented above. The $7,263 per-pupil amount is between the 2001-02 and 2002- 03 budgeted per-pupil amounts.
*Estimate based on historical trend average which includes estimated increases for items such as benefits (health insurance and retirement) and costs due to enrollment growth (staffing and instructional materials)
The estimates above do not include any additional amounts required to cover discretionary reductions from the prior year nor do they assume the non-recurring cuts will be reinstated.
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then other areas that impact the classroom
employ sound fiscal management – respond to signals from state and local sources that funding may be limited
sources, but be prepared for the worst
redirections
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Plan 2014.
Areas of Focus
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meeting
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their Executive Staff member
effectiveness and impact
recommendations
recommendation
(i.e. classroom teachers, teacher assistants and office professionals)
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as a team to verify interdependencies
recommendations with COO/CFO/Budget staff
Strategic Plan 2014 goals
recommendations with superintendent to discuss why cuts are proposed, plan of action and impact of the cuts. Result: Cuts are not equal across all areas, but best proposal is created with least detriment to achieving strategic plan goals
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budget reduction recommendations to Board of Education – much earlier this year due to critical decisions needed for staff and families
increases, sustaining operations, growth and new initiatives
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Department
new initiatives cost estimates based on state planning allotment
recommendation, making adjustments as needed based
Board of Education Note: Budget work sessions are held with the Board throughout the process as needed
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information in the mail
Board of Education
– Jan. 25 at Cornelius Town Hall – Jan. 27 at First Ward Elementary – Feb. 1 at South Mecklenburg
*Board meeting date
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assignments
for the 2011-12 school year
*Board meeting date
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intent to non-renew contracts
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non-renew/dismiss
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Four general information meetings have been scheduled to keep employees informed about the budget process. They are:
budgetquestions@cms.k12.nc.us
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televised live on CMS TV
2011-12 Budget Information section on the CMS Web site
to budgetquestions@cms.k12.nc.us
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Note: Reductions are reflected by area in which the expenditure is budgeted; many expenditures are budgeted centrally and then expended at the school level. 2007-08 Budget Reductions Operations Division (25,342,503) 12.9% (23,163,051) 10.1% (7,347,516) 3.3% (4,202,863) 2.1% Academic Services Division (8,953,377) 5.3% (27,889,959) 14.0% (4,846,412) 2.6% (7,829,831) 4.6% Schools Division (44,764,334) 7.6% (55,626,298) 8.7% (7,054,883) 1.1% (8,318,787) 1.5% Total (79,060,214) 8.3% (106,679,308) 10.0% (19,248,811) 1.8% (20,351,481) 2.2% Less: Funding added back 20,313,480 19,776,737
(58,746,734) 6.2% (86,902,571) 8.1% (19,248,811) 1.8% (20,351,481) 2.2% % of Division Budget (State & Local) 2010-11 Budget Reductions 2009-10 Budget Reductions 2008-09 Budget Reductions % of Division Budget (State & Local) % of Division Budget (State & Local) % of Division Budget (State & Local)
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As of Jan. 11, 2011
Central Support & Operations Division
D epartment R eduction A mount C
m unications/Strategic Partnerships $ 157,830 H um an R esources 1,615,083 T echnology Serv ices 1,860,958 Finance 632,321 Legal 258,000 Athletic D epartm ent 399,500 Alternativ e Ed. & Safe Schools 1,146,108 School Law Enforcem ent 1,157,850 O ffice of Accountability 626,712 Auxiliary Serv ices 115,649 Building Serv ices 8,092,950 Storage and D istribution 286,357 T ransportation 4,000,000 Inv entory M anagem ent/T extbooks 390,420 All O ther C entral Support & O perations 355,949 Subtotal – C entral Support & O perations $ 21,095,687 2010-11 D ivis ion B udget (State & Local) $ 184,834,895 R eductions as a %
ivis ion B udget 11.4% Total pos itions reduced 206
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As of Jan. 11, 2011
Academic Services Division
D epartment R eduction A mount
ev elopment & Leadership Academy $ 117,287 C areer and T echnical Education 3,233,917 ESL Student Education 113,589 Extended Year Programs 1,052,532 Arts Education 149,580 Bright Beginnings PreK Program 2,113,105 T alent D ev elopment 749,989 Literacy & Writing (PreK-12) 109,539 Media Serv ices 165,142 Support Serv ices 148,255 All O ther Academic Serv ices D iv ision 270,160 Academic Serv ices R eorganization 518,391 Subtotal – A cademic Services $ 8,741,486 2010-11 D ivis ion B udget (State & Local) $ 165,355,679 R eductions as a %
ivis ion B udget 5.3% Total pos itions reduced 102
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As of Jan. 11, 2011
Schools Division
D es cription R eduction A mount School closures (School div ision reductions only)* $ 2,573,067 M idw
ision reductions only)** 238,500 Elim inate D SSF H igh School plans; no longer required 1,229,914 Elim inate one support position at each school 11,152,000 Elim inate T A's in 1st & 2nd grade; maintain a 1:22 ratio in k 9,295,201 C hange w eight from 1.3 to 1.25 7,937,758 Increase class size by 2 students for grades 4-12 15,105,435 Elim inate 107 teacher-lev el positions intended to be one tim e 6,338,359 Elim inate 10 positions allocated from the Achiev em ent Z
689,290 Elim inate 2 m edia specialists 138,038 Elim inate Incentiv e, C ritical N eeds & Local Signing bonuses 4,293,933 Av erage Salary Adjustment 2,176,485 Elim inate prior year extended em ployment 79,713 R educe funds for equitable supplies and materials 125,000 Subtotal – Schools D ivis ion $61,372,693 2010-11 D ivis ion B udget (State & Local) $ 586,790,478 %
ivis ion B udget 10.5% Total pos itions reduced 1,045
slides.
**Midwood relocation reduction total is $969,617; the remaining balance is $731,117 of which $267,066 is embedded in
departmental reductions in previous slides and $464,051 in ARRA funding is reflected on the next slide.
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D epartment R eduction A mount %
D ivis ion B udget (State & Local) Pos itions R educed C entral Support & O perations D iv ision $ 21,095,687 11.4% 206 Academ ic Serv ices D iv ision 8,741,486 5.3% 102 Schools D iv ision 61,372,693 10.5% 1,045 Total R ecommended R eductions to State and Local B udget $ 91,209,866 9.7% 1,353 A R R A Funding C liff R educed Bright Beginnings R eduction* 8,448,581 $ 154 M idw
elocation** 464,051 9 Total R ecommended R eductions 100,122,498 $ 1,516
As of Jan. 11, 2011 *Bright Beginnings reduction total is $10,417,921; the remaining $1,969,340, a local reduction, is embedded in departmental reductions on previous slides. **Midwood relocation reduction total is $969,617; the remaining $505,566 is embedded in departmental and school reductions on previous slides.
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What?
grade levels
Who’s impacted?
Why an early decision?
positions so they know how many vacancies they have.
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What?
transportation and/or extending length of instructional day for elementary schools only
Who’s impacted?
Why an early decision?
sensitive decisions
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What?
Who’s impacted?
Why an early decision?
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What?
programs
Who’s impacted?
currently assigned; staff – bus drivers and teachers
Why an early decision?
where kids go to school
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